Close management of your finances should be done all year round, however, the New Year is the perfect time to review and evaluate your plans. With the holidays being a period of heavy spending, your planning can benefit from a little TLC and New Year’s financial resolutions.
Make portfolio readjustments:
The New Year is an ideal time to sit down and review your investments. Without paying diligent attention to your portfolio, you may not notice that some assets aren’t performing as well as you’d expect, or they have stopped performing in the way they once did. Making decisions based on short-term effects rather long-term gains is a damaging strategy and likely to result in lower returns over the long-term. Revisiting and reevaluating the dividends your assets are providing will allow you to assess whether to keep investing in them or to cut your losses as you enter into the New Year.
Have financial resolutions:
There is no limit to how many New Year’s resolutions you can have, so why not make some regarding your financial planning. Now is the perfect time to revise long-term goals and develop some new short-term ones. Seasonal goals might include establishing how well you want your holiday rental to perform or developing renovation plans to begin after the holiday season to bring in more revenue for the next holiday season. This is also a good time to assess your budgeting. Set goals for spending by implementing monthly spending, separated into categories, to track where your money is going
Reassess your mortgage and insurance:
When your insurance is up for renewal, compare against other products and companies to ensure you are getting the best deal. Similarly, looking around for a better deal on your mortgage could potentially save you thousands over the lifetime of your home loan. These areas of financial planning you benefit from the help of an accountant or financial advisor.